Critical Content is now a Los Angeles-based power production company. It is a spin-off from Relativity Media and was formerly known as Relativity Real, a reality-based television production company under the Relativity banner.
The company was produced a broad slate of shows, with some of them being for the A&E Networks. A&E approached us about working with RR in regards to two shows that they were producing in Georgia – Kim of Queens and Get Swank’d. Both shows were in the midst of multiple production seasons.
The challenge for the network and the production company was that the productions were experiencing cost overruns. While the sides were negotiating how to pay for the budget excesses, we got involved with the parties to provide a unique solution.
Both shows, with multiple seasons, had been approved for Georgia tax credits. Our solution was to use the GA tax credits to fund the overages. But how to get access to the tax credit proceeds before the productions had been completed?
We vetted the eligibility and propriety of the production costs, and were satisfied to be involved in bringing the sides together. We loaned more than $1 million to the production company based on the amount of the credits and using the credits as collateral for the loan.
The result was a happy network not having to pay for the overages. And a happy production company being able to be paid for the overages. And shows that got done on time!